CHAPTER 430. WARRANTIES AND BUILDING AND PERFORMANCE STANDARDS
PROPERTY CODE
TITLE 16. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION ACT
SUBTITLE D. STATE-SPONSORED INSPECTION AND DISPUTE RESOLUTION
PROCESS; STATUTORY WARRANTY AND BUILDING AND PERFORMANCE
STANDARDS
CHAPTER 430. WARRANTIES AND BUILDING AND PERFORMANCE STANDARDS
Sec. 430.001. LIMITED STATUTORY WARRANTIES AND BUILDING AND
PERFORMANCE STANDARDS. (a) The commission by rule shall adopt
limited statutory warranties and building and performance
standards for residential construction that comply with this
section.
(b) The warranty periods shall be:
(1) one year for workmanship and materials;
(2) two years for plumbing, electrical, heating, and
air-conditioning delivery systems; and
(3) 10 years for major structural components of the home.
(c) The limited statutory warranties and building and
performance standards must:
(1) require substantial compliance with the nonelectrical
standards contained in the version of the International
Residential Code for One- and Two-Family Dwellings published by
the International Code Council that is applicable under
Subsection (d) and the electrical standards contained in the
version of the National Electrical Code that is applicable under
Subsection (e);
(2) include standards for mold reduction and remediation that
comply with Section 430.003;
(3) establish standards for performance for interior and
exterior components of a home, including foundations, floors,
ceilings, walls, roofs, drainage, landscaping, irrigation,
heating, cooling, and electrical and plumbing components; and
(4) contain standards that are not less stringent than the
standards required by the United States Department of Housing and
Urban Development for FHA programs as set forth in 24 C.F.R.
Sections 203.202 through 203.206.
(d) The International Residential Code for One- and Two-Family
Dwellings that applies to nonelectrical aspects of residential
construction for the purposes of the limited statutory warranties
and building and performance standards adopted under this section
is:
(1) for residential construction located in a municipality or
the extraterritorial jurisdiction of a municipality, the version
of the International Residential Code applicable to nonelectrical
aspects of residential construction in the municipality under
Section 214.212, Local Government Code;
(2) for residential construction located in an unincorporated
area not in the extraterritorial jurisdiction of a municipality,
the version of the International Residential Code applicable to
nonelectrical aspects of residential construction in the
municipality that is the county seat of the county in which the
construction is located; and
(3) for residential construction located in an unincorporated
area in a county that does not contain an incorporated area, the
version of the International Residential Code that existed on May
1, 2001.
(e) The National Electrical Code for One- and Two-Family
Dwellings that applies to electrical aspects of residential
construction for the purposes of this section is:
(1) for residential construction located in a municipality or
the extraterritorial jurisdiction of a municipality, the version
of the National Electrical Code applicable to electrical aspects
of residential construction in the municipality under Section
214.214, Local Government Code;
(2) for residential construction located in an unincorporated
area not in the extraterritorial jurisdiction of a municipality,
the version of the National Electrical Code applicable to
electrical aspects of residential construction in the
municipality that is the county seat of the county in which the
construction is located; and
(3) for residential construction located in an unincorporated
area in a county that does not contain an incorporated area, the
version of the National Electrical Code that existed on May 1,
2001.
(f) Except as provided by a written agreement between the
builder and the initial homeowner, a warranty period adopted
under this section for a new home begins on the earlier of the
date of:
(1) occupancy; or
(2) transfer of title from the builder to the initial homeowner.
(g) A warranty period adopted under this section for an
improvement other than a new home begins on the date the
improvement is substantially completed.
(h) The building and performance standards adopted by the
commission under this section may be adopted in phases and
amended or supplemented by the commission from time to time as
the commission receives additional evidence or information from
task forces or other sources regarding any improvements or
developments in the areas of residential homebuilding practices,
procedures, or technology.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 430.002. WARRANTY OF HABITABILITY. (a) The construction
of each new home or home improvement shall include the warranty
of habitability.
(b) For a construction defect to be actionable as a breach of
the warranty of habitability, the defect must have a direct
adverse effect on the habitable areas of the home and must not
have been discoverable by a reasonable prudent inspection or
examination of the home or home improvement within the applicable
warranty periods adopted by the commission under Section 430.001.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 430.003. MOLD REDUCTION AND REMEDIATION; TASK FORCE. (a)
The building and performance standards adopted under Section
430.001 must include measures that are designed to reduce the
general population's exposure to mold often formed in
water-damaged building materials and that include:
(1) methods by which mold, water damage, and microbial volatile
compounds in indoor environments may be recognized; and
(2) recommended management practices for:
(A) limiting moisture intrusion in a home, which may include the
use of a water leak detection system listed by Underwriters
Laboratories that is capable of shutting off a valve on the main
water line coming into the structure immediately upon detecting a
water leak in the structure; and
(B) mold remediation.
(b) The commission shall appoint a task force to advise the
commission with regard to adoption of standards under this
section. The task force must include representatives of public
health officers of this state, health and medical experts, mold
abatement experts, and representatives of affected consumers and
industries. The commission and the task force shall consider the
feasibility of adopting permissible limits for exposure to mold
in indoor environments.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 430.004. CERTAIN DESIGN RECOMMENDATIONS; ADVISORY
COMMITTEE. The commission shall appoint a task force to develop
design recommendations for residential construction that
encourage rain harvesting and water recycling.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 430.005. ALTERNATIVE STANDARDS FOR CERTAIN CONSTRUCTION.
(a) For the purpose of this title, the only statutory warranty
and building and performance standards that apply to residential
construction in unincorporated areas of counties that are
considered economically distressed areas as defined by Section
15.001(11) of the Water Code and located within 50 miles of an
international border are the standards established for colonia
housing programs administered by the Texas Department of Housing
and Community Affairs, unless a county commissioners court has
adopted other building and performance standards authorized by
statute.
(b) This section does not exempt a builder in an area described
by Subsection (a) from the registration requirements imposed by
this title, including the requirements of Sections 416.001 and
426.003.
(c) An allegation of a postconstruction defect in a construction
project in an area described by Subsection (a) is subject to the
state-sponsored inspection and dispute resolution process
described by this subtitle.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
843, Sec. 44, eff. September 1, 2007.
Sec. 430.006. STATUTORY WARRANTIES EXCLUSIVE. The warranties
established under this chapter supersede all implied warranties.
The only warranties that exist for residential construction or
residential improvements are:
(1) warranties created by this chapter;
(2) warranties created by other statutes expressly referring to
residential construction or residential improvements;
(3) any express, written warranty acknowledged by the homeowner
and the builder; and
(4) warranties that apply to an area described by Section
430.005(a) as described by that section.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
843, Sec. 45, eff. September 1, 2007.
Sec. 430.007. WAIVER BY CONTRACT PROHIBITED. A contract between
a builder and a homeowner may not waive the limited statutory
warranties and building and performance standards adopted under
this chapter or the warranty of habitability. This section does
not prohibit a builder and a homeowner from contracting for more
stringent warranties and building standards than are provided
under this chapter.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 430.008. APPROVAL OF THIRD-PARTY WARRANTY COMPANY. (a)
The commission may approve as a third-party warranty company for
the purposes of Section 430.009:
(1) an entity that has operated warranty programs in this state
for at least five years;
(2) a company whose performance is insured by an insurance
company authorized to engage in the business of insurance in this
state; or
(3) an insurance company that insures the warranty obligations
of a builder under the statutory warranty and building and
performance standards.
(b) A third-party warranty company must submit to the commission
an annual application and fee in the form and in the amount
required by the commission by rule before the company may be
approved under this section.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 430.009. THIRD-PARTY WARRANTY COMPANY. (a) A builder may
elect to provide a warranty through a third-party warranty
company approved by the commission.
(b) A transfer of liability under this section is not effective
unless the company providing the warranty:
(1) agrees to perform the builder's warranty obligations under
this chapter that are covered by the warranty provided through
the third-party warranty company; and
(2) actually pays for or corrects any construction defect
covered by the warranty provided through the third-party warranty
company.
(c) A third-party warranty company approved by the commission
has all of the obligations and rights of a builder under this
subtitle regarding performance of repairs to remedy construction
defects or payment of money instead of repair.
(d) The third-party warranty company may not assume liability
for personal injuries or damage to personal property. A builder
does not avoid liability for personal injuries or damage to
personal property for which the builder would otherwise be liable
under law by providing a written warranty from a third-party
warranty company.
(e) A company that administers a warranty for a third-party
warranty company is not liable for any damages resulting from a
construction defect or from repairs covered under the warranty.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 430.010. MINIMUM STANDARDS FOR DETERMINATION OF DEFECT. A
third-party warranty company shall use defect inspection
procedures substantially similar to the procedures adopted by the
commission under this subtitle. A warranty company may adopt
warranty standards in addition to the standards adopted by the
commission. A third-party warranty company may not reduce the
limited statutory warranty and building and performance
standards, except that a third-party warranty company shall not
be required to provide a warranty of habitability.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 430.011. EFFECT OF SUBTITLE ON OTHER RIGHTS AND
OBLIGATIONS. (a) Except as permitted by this subtitle, an
express, written contract between a homeowner and a builder may
not limit the obligations of a builder under this title.
(b) After the issuance of written findings of fact and a ruling
on an appeal under Chapter 429, a homeowner may bring a cause of
action against a builder or third-party warranty company for
breach of a limited statutory warranty adopted by the commission
under this subtitle. In an action brought under this subtitle,
the homeowner may recover only those damages provided by Section
27.004.
(c) Breach of a limited statutory warranty adopted by the
commission or breach of the statutory warranty of habitability
shall not, by itself, constitute a violation of the Deceptive
Trade Practices-Consumer Protection Act (Subchapter E, Chapter
17, Business & Commerce Code).
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.